U.S. benchmark WTI fell 5.4% Tuesday, ending November down 21% in the largest monthly decline since the start of the pandemic. Brent fell 3.9%, a 17% loss for the month.
Energy futures regained some of Tuesday’s lost ground in late morning trading, with WTI up 3.5% at $68.48/bbl and Brent up 3.6% at $71.69/bbl. U.S. natural gas was 4.6% lower at $4.36/MMBtu.
The American Petroleum Institute reported a smaller-than-expected crude draw of 747,000 barrels last week. Inventories at the U.S. hub in Cushing, Oklahoma, likely gained over 1 million barrels, the third straight week of builds.
The average U.S. gas price could fall from $3.40 to $3.15 per gallon by Christmas, traders predict.
Global oil supply could exceed demand by 3 million bpd in the first quarter of 2022, an OPEC+ report warned, as member nations meet today to discuss production policy. Economists expect the cartel to keep tight control on supply next year, likely keeping prices well above $70/bbl.
Concerns are growing over the risk of blackouts in Europe amid continued high energy prices heading into the winter heating season.
Thermal coal futures in China are down substantially this week after the nation’s economic planner indicated it would further intervene in the markets.
OPEC released 27.74 million bpd of crude in November, an increase of 220,000 bpd from October but short of its planned 254,000-bpd target.
43% of oil and gas workers surveyed want to leave the energy industry within the next five years, with more than half of them contemplating a switch to the renewables sector.
The Texas Railroad Commission, which regulates the state’s energy industry, is requiring more Texas natural gas providers to winterize their facilities this year.
Russia’s next LNG megaproject, the Arctic LNG 2, secured $10.8 billion in financing from Chinese, Japanese and Russian banks.
Google entered a 12-year contract for wind power offshore Germany as part of a plan to power all its data centers and offices with carbon-free electricity by 2030.
Our most recent list of force majeure and allocation announcements from suppliers is here.
Canada’s westernmost province extended fuel rationing to Dec. 14 as repairs continue on flood-damaged infrastructure. Lumber shipments from one of the nation’s largest producers fell 30% the past two weeks.
Hapag-Lloyd and Ocean Network Express issued disruption warnings from late December to mid-February in the key port hub of South China’s Pearl River Delta, citing the nation’s COVID-19 quarantine policies for ship crews returning from New Year travels.
Container shipping rates at the Ports of Los Angeles and Long Beach have fallen 11% since August.
Walmart has seen a 51% increase in throughput at the Ports of Los Angeles and Long Beach following their switch to 24/7 operations, allowing the company to move cargo 26% faster nationwide.
For-hire U.S. truck tonnage in October rose 0.4% from September and 1.8% from a year ago, new data shows.
The EU will unveil new legislation in the first half of next year that could significantly expand subsidies for domestic chipmakers, potentially doubling production by 2030.
China suspended imports at a rail terminal in Inner Mongolia that handles 65% of the nation’s trade with Russia after a local outbreak of COVID-19.
Taiwanese shipping line Wan Hai has acquired more than a dozen secondhand containerships the past year, recently purchasing two medium-sized vessels for $85.5 million. The shipper is one of many logistics firms using record profits during the pandemic to expand capacity.
Singapore shipper Pacific International Lines will pay creditors $1 billion ahead of schedule, signaling its improved financial position.
More than 2.4 million travelers were screened at U.S. airports Sunday, the most since the start of the pandemic.
At least 200 cases of the COVID-19 Omicron variant have been found in over a dozen countries, led by South Africa’s 114 infections. The EU’s 44 infections with the strain have included cases with zero or mild symptoms, health officials report.
Canada’s economy grew a faster-than-expected 5.4% in the third quarter, driven by a strong rebound in manufacturing activity.
Surging energy costs pushed Euro zone inflation to 4.9% in November compared to the same time last year, the highest rate on record. German inflation hit a record high 6%, while inflation in France hit a 13-year high of 3.4%.
Global inflation forecasts have been raised as economists warn consumers could start growing accustomed to faster price rises.
Tourism spending will likely weaken in the economic fallout from the COVID-19 Omicron variant after rebounding sharply in the third quarter:
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